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I model the strategic interaction between firms, that face decisions on investment, forward contracts and spot market quantities. For an investment decision that takes place after firms have contracted forward but before firms compete on the spot market (medium term investment), competition...
Persistent link: https://www.econbiz.de/10010426046
difference in average total outputs across data aggregation and information settings. However, we observe more collusion when …
Persistent link: https://www.econbiz.de/10010530643
We investigate the effect of a ban on third-degree price discrimination on the sustainability of collusion. We build a …' discount factor has to be higher in order to sustain collusion in grim-trigger strategies under price discrimination than under …
Persistent link: https://www.econbiz.de/10011434582
We investigate the possibility for two vertically related firms to at least partially collude on the wholesale price over an in.nite horizon to mitigate or eliminate the e¤ects of double marginalisation, thereby avoiding contracts which might not be enforceable. We characterise alternative...
Persistent link: https://www.econbiz.de/10011674459
We analyze spying out a rival's price in a Bertrand market game with incomplete information. Spying transforms a simultaneous into a robust sequential moves game. We provide conditions for profitable espionage. The spied at firm may attempt to immunize against spying by delaying its pricing...
Persistent link: https://www.econbiz.de/10011962353
information, our data confirm the well-known result that duopoly players achieve, on average, partial collusion. However, as soon …
Persistent link: https://www.econbiz.de/10013295651
constrained. We show that collusion sustainability is non-monotonic in the size of the capacity constrained firm, which has little …
Persistent link: https://www.econbiz.de/10013473721
information, our data confirm the well-known result that duopoly players achieve, on average, partial collusion. However, as soon …
Persistent link: https://www.econbiz.de/10014487322
and cost asymmetry. A dynamic collusion game is constructed, and backward induction is employed to solve the subgame … downstream collusion when the cost asymmetry is large and network externalities are relatively weak. …
Persistent link: https://www.econbiz.de/10014422321
from a theoretical stance how introducing asymmetry in the substitution effects influences the sustainability of collusion … which are asymmetric in magnitude. Within this framework, we study partial collusion using Friedman (1971) solution concept …. Our main result shows that the interval of quantities supporting collusion in the asymmetric setting is always smaller …
Persistent link: https://www.econbiz.de/10011737876